South African Bank Launches Fintech Agenda To Experiment DLTs

South African Bank Launches Fintech Agenda To Experiment DLTs

South African Bank Launches Fintech Agenda To Experiment DLTs The South African Reserve Bank (SARB) has set up a program to launch the Khokha project, which will experiment with distributed ledger technologies (DLTs). It is a priority to launch a project to explore a proof of concept (POC) using technology. “The goal of the POC

South African Bank Launches Fintech Agenda To Experiment DLTs
The South African Reserve Bank (SARB) has set up a program to launch the Khokha project, which will experiment with distributed ledger technologies (DLTs). It is a priority to launch a project to explore a proof of concept (POC) using technology.
“The goal of the POC is to establish interbank clearing and settlement on a DLT. The South African Bank said it would allow SARB and industry to evaluate the benefits and potential risks of DLTs “.

SARB has announced its technology partner, ConsenSys, a global expert on Quorum. It will assist the SARB in the design, configuration and infrastructure of the POC. The project will involve replicating the wholesale payment process on Quorum, the enterprise blockchain co-developed by JPMorgan and ethereum startup EthLab.

According to the official media statement on 13 February, the main objective of the program is to monitor and analyze FinTech developments in order to support a policy framework and an appropriate regulatory regime in the formulation of frameworks.
The development to explore blockchain technology comes despite statements to the contrary by the central bank’s deputy governor who claimed the issuance of a blockchain-enabled central bank cryptocurrency would be “too risky”, in August 2017.

SARB also plans to issue its own digital token to its PoC interbank settlement, similar to its counterpart in Singapore. The SARB insists that the PoC project does not directly involve a major pivot to adopt a blockchain as a core technology fueling the country’s national payment infrastructure. Instead, practical experience to understand the implications of using a tokenized asset on a blockchain to transfer value, the central bank added.